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FILINVEST Development Corp. (FDC), a publicly traded
holding firm controlled by the Gotianun family, is
joining the list of companies that will conduct
follow-on offerings possibly this year.
In a
disclosure to the stock exchange Monday, FDC said its
board has approved the sale of up to a maximum of 3.5
billion primary and secondary shares.
There is
also an option to offer and issue convertible bonds but
the company did not commit if it will pursue such plan.
Shares
of Filinvest Development dropped to P6.30 Monday, down
8.69 percent from P6.9 Friday. At that price, Filinvest
Development stands to raise P22 billion.
“The
corporation is currently evaluating its options
regarding any potential fundraising activity, including
the timing of such fundraising and the feasibility of
the bond flotation,” Filinvest Development said in the
disclosure.
The
board has scheduled on September 7 a special meeting of
the stockholders to confirm and ratify the proposed
equity fundraising.
Filinvest Development holds interest in real estate,
financial services and construction materials
manufacturing.
Last
month, Filinvest Development bought, via a share swap,
Pacific Sugar Holdings Corp., one of the country’s
leading sugar producers.
Filinvest Development forged an agreement with ALG
Holdings Corp. to acquire its 100- percent stake in
Pacific Sugar. ALG Holdings is a member of the Gotianun
group.
Under
the deal, ALG Holdings will get 1.55 billion Filinvest
Development shares amounting to P15.5 billion at P10 per
share. The numbers were based on a valuation conducted
by independent financial advisor Manabat Sanagustin and
Co.
The
acquisition marked Filinvest Development’s initial foray
into the sugar industry. According to the company,
Pacific Sugar is a good vehicle to enter into the
business and capitalize on its growth potential, not
only in the food segment but also as raw material for
fuel.
Pacific
Sugar owns Cotabato Sugar Central Co. Inc., Davao Sugar
Central Co. Inc. and High Yield Sugar Farms Inc. |
